SB 17-127

Senate Bill 17-127, which has been signed into law, allows family members to provide up to three mortgage loans per year to other family members without needing a special license or getting paid extra fees beyond just the interest. The bill also gives the authority to define who counts as a "family member" under this exemption to the board overseeing mortgage loan originators. This change makes it easier for families to help each other financially with home purchases or refinancing, but limits it to three transactions per year to prevent misuse.

Official Summary

Current law defines a mortgage loan originator as an individual who offers or negotiates terms of a residential mortgage loan, including to any family member, but there is an exemption for a parent who acts as a loan originator in providing loan financing to his or her child. The bill expands the exemption to include up to 3 loans per year without compensation, other than interest, between family members, and directs the board of mortgage loan originators to define 'family member' by rule. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

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